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7 ways to define Business Model Innovation
Business transformation just got easier
In 2020, all competitive companies are in a state of constant business transformation. That’s just a fact : those that do not evolve are made redundant by stronger, more agile competitors. And so, mediocre companies update their products and services. Good companies update their processes, too. Great companies, meanwhile, update their business models.
Over the past decade, entrepreneurs and CEOs alike have been told over and over that Business Model Innovation (BMI) is key to their companies’ growth. They tend to nod knowingly, rarely asking themselves what their business model is. They just know they have to change it. This lack of clear definition often leads to the creation of conflicting objectives / actions, as various stakeholders will have different ideas of what the business model of their company is, and what innovation should look like. They mean well, they’re just missing the larger picture.
Below are 7 ways to define a business model. Each definition creates different strategies for innovation, as I shall prove using the supermarket business model as an example. The definitions are lifted both from the fantastic work of Professors Gassmann, Frankenberger and Sauer (Exploring the Field of Business Model Innovation, 2016), and from my own…
